Page 64 - Research & Innovation Report 2020

BUSINESS AND ECONOMIC SCIENCES

The transgenerational African

family business

In August 2020, Nelson Mandela University’s Family Business Unit, together with African
Family Firms (an international organisation), co-hosted the first virtual African Family Business
Research Conference.

“People are hungry for Africa-specific research on African family The conference theme was “Celebrating Research-inspired Family
businesses. Up until now, most of the research on the family Business Management Advancement in Africa”, and it covered
business has been based on the European, American and Asian responsible family business management; indigenous African
context,” says Dr Tony Matchaba-Hove, head of the Department family businesses; succession; values; innovation; and women and
of Business Management in the Faculty of Business and Economic governance in family business.
Sciences. He has been doing novel research on the African family
business for a number of years. In his paper, “Ensuring Transgenerational Potential and Success
of Indigenous African Family Businesses”, Dr Matchaba-Hove
“The conference was a Zoom event for like-minded individuals highlighted the great need for deeper insight and increased
from throughout Africa and the rest of the world, and we are understanding of the practices implemented among indigenous
now growing the platform into an annual event. Meeting online African family businesses that have survived across the generations,
removes the cost element of physically meeting. Having said and of the context in which these businesses operate.
that, we appreciate the value of connecting face to face and are
considering smaller local events to facilitate this.” “My paper looked at what we can learn from existing successful
indigenous African family businesses that have passed on from
the first to the second generation. I focused on these businesses
because the majority of indigenous African family businesses
in South Africa, Botswana and Zimbabwe are currently in the
second generation, and looking to passing them on to the third
generation.

“One of the major differences between the Western and African
concept of the family business is the former is often more
nuclear but the latter takes in the extended family – and a lot
of responsibility comes with this. Funds have to be put aside for
various obligations, such as, ‘my brother’s son needs to go to
university’; it’s regarded as part of the African family business’s
corporate social responsibility.

“I also looked at the multidimensional nature of performance
among indigenous African family businesses. When we talk
about performance, we look at three aspects: entrepreneurial
performance – is the business growing and developing new
products and services or diversifying; financial performance – that’s
your traditional concepts of profit and sales turnover; and social
performance – is the business contributing to the community, does
Dr Tony Matchaba-Hove the business have a good name, is the business able to support the

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